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Considering Foreclosure |
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I recently bought a 2nd home in Vegas that I realize I can no longer afford. I am trying to sell it, but the market is slow. Is it better for me to foreclose on the purchase loan, rather than refinance and still end-up foreclosing down the road? Can I be held personally liable for any mortgage deficit after the foreclosure? |
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Yes, if a foreclosure sale doesn't bring enough to cover the debt plus legal costs, possibly back taxes etc., the lender can seek a deficiency judgment against you. In addition, a foreclosure on your credit record is worse than a bankruptcy, as far as any future mortgage borrowing might be concerned.
(Bankruptcy doesn't eliminate a mortgage, by the way.)
Your best bet is to contact the lender and discuss the situation with their workout department. They may have something to suggest. They don't like taking back property if they can possibly avoid it. |
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Edith
Originally published on October 3, 2007 |
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